AUD/USD: Likely to trade in a range between 0.6420 and 0.6485 – UOB Group

Australian Dollar (AUD) is likely to trade in a range between 0.6420 and 0.6485 vs US Dollar (USD). In the longer run, further AUD strength is not ruled out, but it must first break clearly above 0.6510, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Further AUD strength is not ruled out

24-HOUR VIEW: "AUD rose to 0.6495 yesterday before pulling back. The pullback in overbought conditions suggest that instead of continuing to advance, AUD is more likely to trade in a range between 0.6420 and 0.6485."

1-3 WEEKS VIEW: "Yesterday, AUD rose to a five-month high of 0.6494 before easing. While further AUD strength is not ruled out, it must break and remain above 0.6510 before further sustained rise is likely. The likelihood of AUD breaking clearly above 0.6510 will remain intact as long as 0.6385 (‘strong support’ level) is not breached. Looking ahead, should AUD break clearly above 0.6510, the next level to watch is 0.6550."